Margin Shortfall Analysis

A Risk framework for Crude Oil and Petrochemical industry: Models and Tools: Session IV


6 mins read

This paper presents an extension of well accepted risk models in the financial services space to the risk management needs of the oil, gas and petrochemical industry in the region. We primarily extend the Value at Risk (VaR) framework and apply it to estimating refinery margins and inventory losses using crude oil price volatility as an input.